HOME         WEBSITE         SUBSCRIBE           E-GREETINGS   
                               

Thursday, May 14, 2009

SIP returns & beyond

SIP (Systematic Investment Plan) is a very important part of financial planning process. Whether the markets are up or down it is irrelevant, to make sure you get value out of your money keep the SIP running. Remember, here i am talking about only Mutual Fund SIP's.

So, it was an unfortunate surprise to read reports which said that as soon as markets collapsed in early 2008 investors started cancelling their SIP plans. Around 3.62 million SIP accounts in September 2008 tumbled to 3.26 million SIP accounts in March 2009. It is true that no one was spared when market collapsed not even SIP investors. But, now the situation has changed to some extent at least better for only those who did not cancelled their SIP plans. Now, the markets are in recovery mode.

"Stock markets behave in cycles, it never works unidirectional. "

Diversified equity funds have started showing the rosy picture on 5 year basis ever since markets have started recovering as of 30th April, 2009. In fact, 85 per cent of the diversified equity funds have given positive returns over the past five years with Magnum Contra leading the pack with 16.23 per cent returns. Sahara Growth and DSP BR Top 100 Equity followed with a 15.7 per cent and 15.65 per cent returns respectively.

However, all these diversified equity funds, including the ones mentioned above, are still faring miserably over the three-year period’s SIP returns – they are all in red.

Furthermore, when we talk about equity investments they are meant for long term any horizon above 5 years atleast.

The basic purpose of SIP plans is making the most via disciplined manner irrespective how market moves, rupee cost averaging & power of compounding.

It is also important to note SIPs do not guarantee profits under all circumstances but they are though effective vehicles in long term wealth creation.

"Do not invest in haste & in the flow of emotions. Think Different! Think Smarter! But, do not forget to Act"

______________________________________________________________
______________________________________________________________

Check For Yourself Reader

SIP Returns
Scheme Name
5 year Return (%)
3 year Return (%)
Magnum Contra
16.23
-22.12
Sahara Growth
15.70
-18.59
DSPBR Top 100 Equity Reg
15.65
-19.99
HDFC Top 200
14.95
-19.87
ICICI Prudential Dynamic
14.24
-22.79
DSPBR Equity
14.06
-22.46
Reliance Growth
13.74
-23.09
Birla Sun Life Frontline Equity
13.72
-20.91
Baroda Pioneer Growth
13.30
-19.58
Magnum Multiplier Plus
13.22
-24.17
DWS Alpha Equity Regular
12.22
-22.03
Franklin India Prima Plus
11.92
-22.60
Sundaram BNP Paribas Select Focus Reg
11.87
-23.55
HSBC Equity
11.81
-21.57
UTI Infrastructure
11.77
-25.34
Kotak 30
11.53
-23.40
Franklin India Bluechip
11.48
-21.55
DWS Investment Opportunity Regular
11.44
-22.61
ICICI Prudential Growth
11.41
-22.31
HDFC Index Sensex Plus
11.26
-21.85
HDFC Equity
11.11
-23.14
Magnum Equity
11.00
-23.34
HDFC Growth
10.91
-23.31
Templeton India Growth
10.15
-21.61
Birla Sun Life Asset Allocation Aggressive
9.67
-20.35
Reliance Vision
9.58
-24.40
Tata Pure Equity
9.50
-24.03
UTI Index Select Equity
9.43
-22.78
Birla Sun Life Equity
9.16
-25.55
Canara Robeco Equity Diversified
9.06
-21.64
DSPBR Opportunities
8.72
-24.87
FT India Life Stage FoF 20s
8.53
-21.43
DBS Chola Opportunities
8.52
-23.32
ICICI Prudential Advisor-Very Aggressive
8.38
-23.99
ICICI Prudential Power
8.01
-25.39
Sundaram BNP Paribas Select Midcap Reg
7.82
-28.57
UTI Mastershare
7.62
-22.46
ING Nifty Plus
7.56
-23.57
ING Core Equity
7.32
-25.44
UTI Equity
6.94
-23.05
HSBC India Opportunities
6.79
-26.34
Franklin India Opportunities
6.48
-27.13
Birla Sun Life Buy India
6.11
-25.12
Birla Sun Life Mid Cap
5.91
-27.08
UTI Master Plus '91
5.68
-26.02
Birla Sun Life Dividend Yield Plus
5.28
-22.27
HDFC Capital Builder
5.16
-25.67
Sundaram BNP Paribas Growth Reg
4.78
-27.59
Taurus Starshare
4.44
-30.55
Birla Sun Life Basic Industries
4.44
-26.82
UTI MNC
4.41
-23.40
UTI Master Growth
4.29
-25.71
Morgan Stanley Growth
3.31
-27.43
Birla Sun Life MNC
3.14
-25.24
Birla Sun Life Advantage
2.98
-27.48
DBS Chola Growth
2.90
-27.01
Principal Resurgent India Equity
2.77
-28.00
Taurus Bonanza
2.56
-29.94
Tata Equity Opportunities
2.52
-30.14
Tata Select Equity
1.77
-30.94
Kotak MNC
1.69
-25.89
Magnum Global
1.61
-33.52
LICMF Equity
1.28
-25.82
LICMF Sensex Advantage
0.88
-27.08
LICMF Growth
0.10
-26.72
Tata Growth
-1.11
-30.31
UTI Services Industries
-1.41
-30.21
JM Equity
-1.79
-31.85
UTI Master Value
-1.87
-28.30
Principal Growth
-2.32
-30.92
Escorts Growth
-2.32
-33.92
Franklin India Prima
-3.90
-31.94
UTI Mid Cap
-5.54
-32.01
Kotak Global India
-5.79
-34.44
Birla Sun Life India Opportunities
-8.12
-34.11
Taurus Discovery
-13.27
-39.86
Return as on 30th April 2009


Written By- Varun Vaid



Posted by

Blog Archive

____________________________________________________________________________________________

Disclaimer - All investments in Mutual Funds and securities are subject to market risks and uncertainty of dividend distributions and the NAV of schemes may go up or down depending upon factors and forces affecting securities markets generally. The past performance of the schemes is not necessarily indicative of the future performance and may not necessarily provide a basis for comparison with other investments. Investors are advised to go through the respective offer documents before making any investment decisions. Prospective client(s) are advised to go through all comparable products in offer before taking any investment decisions. Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the fund will be achieved. Information gathered & material used in this document is believed to be from reliable sources. Decisions based on the information provided on this newsletter/document are for your own account and risk.


In the preparation of the material contained in this document, Varun Vaid has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the Varun Vaid and which may have been made available to Varun Vaid. Information gathered & material used in this document is believed to be from reliable sources. Varun Vaid however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Varun Vaid does not in any way through this material solicit any offer for purchase, sale or any financial transaction/commodities/products of any financial instrument dealt in this material. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice.


Varun Vaid, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. Any person subscribing to or investigating in any product/financial instruments should do soon the basis of and after verifying the terms attached to such product/financial instrument. Financial products and instruments are subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. Please note that past performance of the financial products and instruments does not necessarily indicate the future prospects and performance there of. Such past performance may or may not be sustained in future. Varun Vaid, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation in the financial instruments/products/commodities discussed here in or act as advisor or lender / borrower in respect of such securities/financial instruments/products/commodities or have other potential conflict of interest with respect to any recommendation and related information and opinions. The said person may have acted upon and/or in a manner contradictory with the information contained here. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of Varun Vaid. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else.


Varun Vaid also does not take any responsibility for the contents of the advertisements published. Readers are advised to verify the contents on their own before acting there upon.


Published Credits goes to following sources & all the mentioned sources as footer below the published material- Bloomberg, Valueresearch Online, Capital Market, Navindia, Franklin Templeton, Kitco, SBI AMC, LIC AMC, JM Financial AMC, HDFC AMC, The Hindu, Business Line, Personal FN, Economic Times, Reuters, Outlook Money, Business Standard, Times of India etc.